Goldman Sachs (NYSE:GS) Buys into Digital Currency added by Paul Ebeling on
Goldman Sachs (NYSE:GS)Buys into Digital Currency
Bitcoin rose back to $10,000 as the purchase of one of the bigger digital token exchanges by a more established financial services company bolstered expectations for wider mainstream acceptance of cryptocurrencies.
Circle Internet Financial Ltd., a closely held firm backed by Goldman Sachs Group Inc.(NYSE:GS), said it acquired Poloniex Inc., the 14th largest digital-token exchange.
Terms of the agreement were not disclosed.
However, on good authority we learned that the deal was for about $400-M.
Bitcoin gained as much as 4.3% to $10,346, after dropping below Key support last week. Bitcoin has hovered around the $10,000 mark for most of the year, or about 50% the record hit in December 2017.
Currently, Bitcoin is trading at: 10,259.9951, +768.07, +8.09% as of 9:02p GMT, the market is open.
“It has a lot to do with this announcement of Circle buying Poloniex as it’s providing some support for the exchange industry,” said Fundstrat’s Tom Lee, who forecasts Bitcoin will end the year at $25,000. “Breaking a big round number is definitely a positive, but from a fundamental perspective, it’s highlighting that developments in crypto this year have actually been positive.”
Circle, which allows users to transfer money via text, said in an statement on its website it will “address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform.”
The cryptocurrency market may also be benefiting from renewed interest in Asia after the recent Chinese New Year holidays, as traders are seeing a turnaround on multiple cryptos with volume as it is the week after Chinese New Year: “We’re back to business.”